Tuesday was a difficult day for the euro, as it lost ground against both sterling and the US dollar. The single currency experienced very little control throughout the day, with losses against the US dollar even though US consumer confidence data was poor, and weakness against sterling after the release of improved Gross Domestic Product (GDP) data.
The most significant piece of data from the Eurozone was the Italian Consumer Confidence Index, which came out far worse than anticipated, at 106.5 rather than the expected figure of 109.5. With many investors focusing on interest rates, and no sign of European countries being the first to raise them, pressure has shifted within the Eurozone, and more importantly, away from Greece.
The single currency will be looking to recover this today, starting with Consumer Confidence data from Germany early this morning, followed by the Consumer Confidence figures from France, which may give the euro just the start it needs.